US textile, apparel and retail groups have jointly asked USTR to adopt a trade incentive programme tied to Section 301 forced-labour probes.
The plan would let brands and retailers earn tariff credits by buying US textiles and qualified apparel from Western Hemisphere FTA partners.
Supporters say adoption could double US textile exports to the region to $29 billion annually.
This is the first time these organisations have publicly backed a joint trade policy initiative, despite often taking different positions on trade.
The proposed mechanism would allow brands and retailers to earn tariff credits when they buy US textiles and qualified apparel goods from key Western Hemisphere US free trade agreement partners, the joint press statement said.
Those credits could then be used to offset potential Section 301 tariffs from eligible countries, making the proposal directly relevant for sourcing teams managing tariff exposure and supply-chain diversification.
The groups said in their submission that the programme is designed to reshore domestic manufacturing, stabilise and expand Western Hemisphere textile and apparel supply chains, and help brands and retailers diversify sourcing.
They added the programme could support more than 56,000 new US jobs, drive billions of dollars in domestic investment and benefit the wider supply chain, including cotton farming.
If adopted, the groups said the incentive programme has the potential to double US textile exports to the Western Hemisphere, taking them to $29 billion annually.
They asked USTR to consider the proposal as part of any remedy emerging from the Section 301 investigations currently under way.
Fibre2Fashion News Desk